Restructuring of minorities finance body NMFDC on anvil

New Delhi, Mar 21 (UNI) Restructuring of the National Minorities Development Corporation(NMFDC) is on the anvil as the Minority Affairs Ministry has almost given final shape to the proposal.

Sources in the Ministry told UNI that the proposal would soon be sent to the Cabinet.

The restructuring is largely based on the recommendations of an expert committee set up to look into the problems of the Corporation and suggest ways to make it play a more effective role in the development of minorities.

There are some minor changes from the structure suggested by the Expert Committee headed by Mr Nasser Munjee, chairman, Development Credit Bank.

The Report had suggested the creation of a National Minorities Development Corporation, with the existing NMDFC functioning as one of its two wings. The other wing would be a Waqf Development Agency.

However, according to sources, the idea of creating another apex organisation has been dropped and the existing MNFDC would continue to be the apex orgainsation.

But the suggestion to create a Wakf Development Agency has been retained.

As per the Expert Committee suggestion, the government could hold a 49 per cent stake in the new corporation while the private parties called minorities partnerships could have a 51 per cent share.

The main focus of the private efforts should be in the field of education, jobs and social infrastructure.

The NMDC would shed its not-for-profit status and would act as a government owned holding company. It will also generate its own revenue surpluses to finance welfare schemes, the Committee had recommended.

The suggested Waqf development Agency would be providing a support service to waqfs which can avail opportunities provided by the Corporation.

The Report calls for strengthening of state channelising agencies (SCAs).It has suggested that lending and borrowing rates for the SCAs should be at the prevalent market rates so that these agencies could recover their operating costs.

The NMDFC was constituted in 1994 as a Public Sector Enterprise under Section 25 of the Companies Act.